Interim evaluation of the technology initiative for the private sector (TIPS) project

Interim evaluation covers the period 6/91-7/93. The project has been extremely successful and cost effective. Clients have enjoyed a composite growth rate of approximately 62%, compared to a 1992 national growth rate of approximately 5%. More than 2,800 new full-time jobs have been created in addition to a substantial increase in the number of contracted piece-rate workers. U.S. imports to Sri Lanka have increased threefold, and non-U.S. imports have increased by approximately 87%. Domestic sales have increased 34% and export sales 100%. Expenditures on technology and equipment have increased 100%. There is every reason to believe that client initiatives will be sustained through self-determination and a dynamic market system. The project has experienced a huge demand for assistance, and has approved more than $3.2 million in subgrants compared to budget projections of $2.4 million. Appropriate adjustments were made to the Cooperative Agreement (2/93) to reduce the number of activities, award fewer grants in smaller increments, and require larger client contributions. Quality performance, however, has not been affected, and demand remains strong. The project's success has been driven by promotional and support activities. Through visits to over 1,000 businesses, promotional activities through industry and trade associations, feasibility reports, speaking engagements, and workshops and seminars on enterprise development and technology trasnfer, the project gained 205 active clients, and has directly reached in excess of 5,600 individuals in primary economic sectors, government, and public services. The U.S. staff prepares brief trade show reports and reports on industry reconnaissance opportunities; coordinates market and technology research studies through the American Business Linkage Enterprise (ABLE) network; assists in searches for U.S. suppliers, equipment sources, and markets; and coordinates client visits to the United States (including arrangements with the Entrepreneurs International program). One hundred and twenty-eight subgrant activities have been completed. Over 100 Sri Lankan clients and over 200 U.S. principals have been mutually introduced. The project's primary focus, grant activity, has allowed clients to identify new sources of technology; upgrade processes; license new products; design production lines; receive training and consulting services; develop marketing materials; make environmental and safety improvements; receive export marketing assistance; make laboratory equipment purchases; and form linkages with potential foreign collaborations. The following lessons were learned. (1) The project's integrated design is unique and could serve as a model for USAID and International Executive Services Corps (IESC) private sector initiatives. However, it may not work for donors that lack access to an integrated business network, like that of IESC. (2) Successfully implemented projects require exit strategies for graceful project completion. (3) A demand-driven approach has enhanced the project's ability to meet client needs. The project urged clients to submit proposals based on their own needs. (4) Non-targeted assistance avoids making political or economic assumptions about sector preferences or capabilities, thereby averting potential conflicts in the host country and reinforcing client confidence that the project will remain impartial in awarding grants on merit and initiative. (5) Implementing projects outside the realm of government direction and control prevents the project from coming under undue government influence and strengthens the project's credibility in the eyes of its clients. (6) Promoting the concepts of self-worth and self-determination is essential for success in private enterprise development.